Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

Obviously, I will make a number of points to start with. Newstart is designed to support people while they are looking for work. I am very conscious that this is an issue that a range of individuals in this chamber have looked at in detail. It is the case that it is very tough for people to live on low or fixed incomes. In terms of the indexation issues that have been raised, they obviously predate this government. Indexation arrangements for allowances and pensions have been a longstanding feature of our social security system.

In terms of the position the government has taken, I want to make clear a few of the things that have been done to try to support particularly sole parents, who were referenced by the senator. I start by making the point that we on this side do believe that the best way you can ensure a family's security is to support and encourage people into work. The evidence of intergenerational disadvantage that results from long-term unemployment is very cogent. The question is: how do you support people into work?

I make the point that this government has put in place a very substantial amount of assistance. For example, the government is investing some $5.9 billion and reforming Jobs Services Australia to target assistance to those most in need. Of the over 500,000 Newstart recipients, 150,000 get tailored assistance in training, skills development and work experience. The senator would also be aware of the taper rate changes which were part of the previous budget which ensure that sole parents moving onto Newstart retain more of every dollar they earn.